Sen Elizabeth Warren: Choice-Wyndham bad for business

In an ongoing war of words and public relations efforts over Choice Hotels proposed hostile takeover of Wyndham Hotels & Resorts, Wyndham is circulating a link on Thursday that shows a letter sent by Massachusetts Democratic Senator Elizabeth Warren to Federal Trade Commission Chair Lina Khan stating that a Choice/Wyndham combination would, “would harm entrepreneur franchisees and lead to higher hotel rates for customers across the country.”

Warren pointed out that “reduced competition from mergers would mean “fewer options and, thus, less leverage to demand better services for a lower cost.”

She said with profit margins becoming thinner and thinner, “it is highly likely that customers will end up bearing the brunt of reduced competition.”

Warren wrote, “If the takeover of Wyndham is successful, Choice could use the reduced competition to raise prices and increase their profits, all while using dozens of brands to hide the fact that customers have fewer travel options.”

She concluded, “The FTC should carefully scrutinize Choice’s attempted takeover of Wyndham and block the takeover if it violates antitrust laws.”